Vici Properties Inc. · NYSE:VICI
Vici Properties — Investor Presentation (November 2017)
37 slides from Vici Properties's investor presentation, Nov 14, 2017
Slide 1: Investor Presentation November 2017
INVESTOR PRESENTATION N O V E M B E R 2 0 1 7
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Certain statements in this presentation and discussed at investor meetings which this presentation accompanies that are not historical facts are “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking stat
Slide 3: Table of Contents
3 TABLE OF CONTENTS WH O WE ARE1 P ORTFOLIO OV ERV IEW2 H IG H - QUALITY, BEST - IN -CLASS TENANT 3 F INANCIAL OV ERV IEW AND CAP ITAL STRUC TURE4 G OV ERNANCE QUALITY AND MANAG EMENT / BOARD V IG OR5
Slide 4: Who We Are
4 1WHO WE ARE
Slide 5: VICI is the next generation experiential real estate company
5 VICI IS THE NEXT GENERATION EXPERIENTIAL REAL ESTATE COMPANY MISSION TO BE AMER ICA’S M O S T DY N A M I C L E I S U R E & H O S P I TA L I T Y E X P E R I E N T I A L R E I T V IS ION W E W I L L B E T H E R E A L E S TAT E PA R T N E R O F C H O I C E F O R T H E WORLD ’S LEAD ING CREATORS & OPE
Slide 6: Diversified portfolio of high-quality, well-invested experiential real estate
6 DIVERSIFIED PORTFOLIO OF HIGH-QUALITY, WELL-INVESTED EXPERIENTIAL REAL ESTATE Equity market values measured as of November 9, 2017. (1) 35 year master lease structured as 15-year initial term with four five-year extensions by Tenant. (2) See Appendix slide 35 for additional details regarding Corpo
Slide 7: Experience vs. Things: consumer spending trends
7 75 100 125 150 175 200 225 250 2003 2005 2007 2009 2011 2013 2015 2017 Experience Things Consumer spending trends reveal that companies that sell “experiences” have consistently outperformed companies that sell “things” and the outperformance of those experience-based companies has proven the stre
Slide 8: Fundamental advantages of experiential and gaming real estate
8 FUNDAMENTAL ADVANTAGES OF EXPERIENTIAL AND GAMING REAL ESTATE 2 Geographic & Cash Flow Segment Diversity 7 Transparent Growth Pipelines 6 Tenants are Financially Strong 1 100% Occupancy 5 Tenant Financial Transparency 3 High Barriers to Entry Given Legislative & Regulatory Controls 8 Regional Gami
Slide 9: Portfolio Overview
9 2PORTFOLIO OVERVIEW
Slide 10: High quality experiential real estate anchored by iconic assets
10 HIGH QUALITY EXPERIENTIAL REAL ESTATE ANCHORED BY ICONIC ASSETS Harrah’s Metropolis Metropolis, IL (Southern IN / IL) Harrah’s Gulf Coast Biloxi, MS Harrah’s and Harvey’s Lake Tahoe Stateline, NV (Reno, NV) Caesars Atlantic City Atlantic City, NJ Horseshoe Bossier City Bossier City, LA (Bossier C
Slide 11: Gaming facilities located in diverse leading markets
11 19 GAMING FACILITIES LOCATED IN DIVERSE LEADING MARKETS Atlantic CityKansas City Tunica Shreveport / Bossier City Las Vegas Reno / Lake Tahoe Council Bluffs Chicago Metropolis Louisville Caesars Palace Las Vegas Harrah’s Reno Harvey’s Lake Tahoe Harrah’s Lake Tahoe Harrah’s Council Bluffs Horsesh
Slide 12: Broad array of premium experiential amenities
12 BROAD ARRAY OF PREMIUM EXPERIENTIAL AMENITIES Casino Space 1.2 MM Square Feet Hotel Rooms ~12,000 Rooms Food & Beverage 113 Restaurants Meeting Space 760K Square Feet Retail 50+ Outlets Live Entertainment ~1,600 Ticketed Shows Recreational Activities 39 Bars / Nightclubs 20+ Pools V I C I I S A R
Slide 13: Caesars Palace: iconic asset in prime location on Las Vegas Strip
13 CAESARS PALACE: ICONIC ASSET IN PRIME LOCATION ON LAS VEGAS STRIP Over 27,000 daily visitors Home to The Forum Shops, a 680,000 sq. ft. shopping mall and 4th largest grossing retail shopping mall per sq. ft. Located on ~86 acres of land at the heart of the Las Vegas Strip 3,974 hotel rooms across
Slide 14: Organic growth from three CEOC option properties
14 ORGANIC GROWTH FROM THREE CEOC OPTION PROPERTIES P U R S U A N T T O C A L L R I G H T A G R E E M E N T S : P R O V I D E O V E R A P E R I O D O F F I V E Y E A R S ( 1 ) F R O M S P I N - O F F , T H E C OMP AN Y ’ S R I G H T T O A C Q U I R E T H R E E P R O P E R T I E S F O R P U R C H A S
Slide 15: Strategic development opportunities using Las Vegas land
15 STRATEGIC DEVELOPMENT OPPORTUNITIES USING LAS VEGAS LAND 7-owned acres of strip frontage property at Caesars Palace part of the CPLV lease and available for redevelopment 46-owned acres of undeveloped commercial scale property that is part of the Non-CPLV lease and located adjacent to the LINQ an
Slide 16: Caesars owned real estate
16 CAESARS OWNED REAL ESTATE Octavius Tower Harrah’s Las Vegas Paris Las Vegas Bally’s Las Vegas The Cromwell Flamingo Las Vegas The LINQ Hotel & Casino Planet Hollywood Resort & Casino Rio All Suites Hotel and Casino Horseshoe Baltimore Harrah’s Philadelphia A TENANT PORTFOLIO WITH ADDITIONAL ACQUI
Slide 17: Multiple avenues for growth
17 MULTIPLE AVENUES FOR GROWTH Core Portfolio Caesars Call Option Properties Caesars LV & non-LV Properties/Lands Acquisition & Development Partnerships with Caesars Casino Acquisitions w/ other Gaming Cos. International Gaming Opportunities Non-Gaming Resorts St rate gi c & E conomi c R is k Time O
Slide 18: Best in Class Tenant
18 3BEST IN CLASS TENANT
Slide 19: Caesars Entertainment – best-in-class operator as partner
19 CAESARS ENTERTAINMENT – BEST-IN-CLASS OPERATOR AS PARTNER Caesars is the Largest Gaming and Entertainment Company in the World with #1 or #2 Market Share in Most Markets $8.4bn1 2016 Total Net Revenues >50mm Total Rewards Members >65,000 Employees >100mm Guest Visits Per Year 48 Casinos Across 19
Slide 20: Significant diversification in tenant revenue streams
20 East 17% Other3 26% West 29% Central 28% SIGNIFICANT DIVERSIFICATION IN TENANT REVENUE STREAMS Operationally Diversified Revenue Sources¹ Geographically Diversified Revenue Sources2 Source: CEOC Lender Presentation and Documentation , filed with the SEC on March 21, 2017 (1) Represents 2016 reven
Slide 21: Strong historical guarantor cash flow and improved credit story at emergence
21 $23.5 14.0x $2.7 $9.6 $1.0 Debt¹ ($bn) Net Leverage¹ Fixed Charges² ($bn) 2014 Proj. at Emergence STRONG HISTORICAL GUARANTOR CASH FLOW AND IMPROVED CREDIT STORY AT EMERGENCE (1) CEC Enterprise Wide Adjusted EBITDA for the years ended December 31, 2013-2016 is as disclosed in CEC’s Form 8-K, file
Slide 22: Caesars is the preeminent gaming operator
22 85% 108% 95% 121% 149% 117% 118% 119% 137% 144% Atlantic City Las Vegas Iowa Kansas City Other Nevada Gulf Coast Indiana/ Illinois Louisiana New Orleans Tunica CAESARS IS THE PREEMINENT GAMING OPERATOR Source: Caesars Analyst Day Presentation, October 24, 2017, Company filings Note: “Fair Share”
Slide 23: Significant recent investment in real estate
23 3.8% 3.4% 3.7% 3.7% 5.7% 4.8% 6.6% 6.2% 5.7% 5.1% 4.8% 4.6%4.9% 0.4% 5.5% 4.7% 3.6% 4.1% 2.8% 3.0% 2.8% 3.2% 2.2% 2.6% 5.7% 4.8% 7.2% 4.4% 2011 2012 2013 2014 2015 2016 MGM BYD PNK PENN ERI RRR Peer Average CEOC Average SIGNIFICANT RECENT INVESTMENT IN REAL ESTATE ($ IN MM) Source: CEOC Lender Pr
Slide 24: Financial Overview and Capital Structure
24 4FINANCIAL OVERVIEW AND CAPITAL STRUCTURE
Slide 25: Well-positioned capital structure
25 N E A R - T E R M B A L A N C E S H E E T O P P O R T U N I T I E S D E B T S U M M A R Y WELL-POSITIONED CAPITAL STRUCTURE CPLV Property Debt $MM Interest Rate Maturity CPLV Mortgage (CMBS) $1,550 4.45% 2023 CPLV Senior Mezzanine (CMBS) 200 6.75% 2023 CPLV Intermediate Mezzanine (CMBS) 200 7.45%
Slide 26: Post-emergence pro forma operating framework
26 POST-EMERGENCE PRO FORMA OPERATING FRAMEWORK AFFO: $389 Million Adjusted EBITDA: $640 Million P R O F O R M A 2 0 1 6 R E S U LT S P O S T - E M E R G E N C E P R O F O R M A 2 0 1 6 R E C O N C I L I AT I O N ~$23MM G&A (1) Inclusion AFFO: ~$366 Million Adjusted EBITDA: ~$617 Million Source: Reg
Slide 27: Prospect for cost of capital improvements
27 TEV / 2018E EBITDA Notes: VICI Pro forma EBITDA based on pro forma calculations in the Company’s Registration Statement on Form 10 filed with the SEC on October 23, 2017 for an additional $22 million to $24 million of estimated SG&A costs expected to be incurred, which costs are not permitted to
Slide 28: Governance Quality and Management / Board Vigor
28 5GOVERNANCE QUALITY AND MANAGEMENT / BOARD VIGOR
Slide 29: Board and management experience across a variety of sectors
29 BOARD AND MANAGEMENT EXPERIENCE ACROSS A VARIETY OF SECTORS Hospitality Travel / LeisureREIT / Real EstateGaming OtherFinancial Services
Slide 30: Proven and independent management team
30 PROVEN AND INDEPENDENT MANAGEMENT TEAM WITH EXPERTISE IN REAL ESTATE, GAMING & HOSPITALITY Affiliations Biography Edward Baltazar Pitoniak Chief Executive Officer Currently serves as the Vice Chairman of Realterm and as an independent director on the Board of Ritchie Brothers Served as Managi
Slide 31: Experienced and independent board of directors
31 EXPERIENCED AND INDEPENDENT BOARD OF DIRECTORS Affiliations Biography James R. Abrahamson* Chairman of Interstate Hotels & Resorts Previously served as Interstate’s CEO from 2011 to March 2017 Serves as an independent director at La Quinta Holdings, Inc. and at BrightView Corporation Eugene
Slide 32: Appendix
APPENDIX
Slide 33: Summary pro forma financial data
33 SUMMARY PRO FORMA FINANCIAL DATA (1) FFO, AFFO and Adjusted EBITDA are not required by, or presented in accordance with, GAAP. These are non-GAAP financial measures and should not be construed as alternatives to net income or as an indicator
Slide 34: Reconciliation from GAAP to non-GAAP measures
34 RECONCILIATION FROM GAAP TO NON-GAAP MEASURES (a) Represents the non-cash adjustment to recognize fixed amounts due under the Lease Agreements on an effective interest basis at a constant rate of return over the terms of the leases. (b) Represents depreciation related to our golf course operation
Slide 35: Calculation of historical corporate level rent coverage
35 CALCULATION OF HISTORICAL CORPORATE LEVEL RENT COVERAGE 1 (1) Corporate Guarantor rent coverage is calculated by dividing (a) CEC Enterprise Wide Adjusted EBITDA (presented as “Guarantor EBITDAR” in the table above) by (b) year one rent under the Master Leases of $630.0 million for all periods pr
Slide 36: Master lease agreements: security & earnings predictability
36 MASTER LEASE AGREEMENTS: SECURITY & EARNINGS PREDICTABILITY T E R M Non-CPLV Initial Base Rent $465 MM Annual escalator > of 2% or change in CPI beginning in year 6 Lease Years 1-7: Initial Base Rent, subject to Annual Escalator beginning 6th lease year 8th Lease Year and Beyond: Rent subject to
Slide 37: Properties located in high density population centers
37 19 PROPERTIES LOCATED IN HIGH DENSITY POPULATION CENTERS Source: U.S. Census Bureau Kansas City Memphis Las Vegas Chicago VICI Current Properties 100-mile radius of select high density population centers San Francisco Philadelphia New York New Orleans Indianapolis Key Sourc
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